Offshore Healthcare Software Development from A to Z: Stats, Risks, Opportunities, and More

What Is Offshore Software Development?

Before jumping to the detailed analysis of offshore healthcare software development, let us clarify what offshore software development is and why it matters for modern businesses.

In a nutshell, offshore software development is a practice of outsourcing development processes to a software development vendor located in a region with a different timezone. This involves delegating entire projects or specific tasks, such as the discovery phase, UI/UX design services, or testing, to a third-party provider. At first glance, it may seem that offshore software development is only about cost-cutting. While it does offer significant savings, its actual value extends far beyond just financial benefit. Offshore software development is a great way to fasten innovation, access a specialized talent pool, or scale your business operations. Thousands of companies from all over the world choose offshore software development to bring their project ideas to life without heavy investment in in-house teams. Well, how does it work? For instance, a company from the US can outsource their IT needs to an offshore software development provider from Eastern or Central Europe. With multiple outsourcing habs like Poland, Ukraine, and Estonia, Europe is one of the most popular offshore software development destinations nowadays.

Offshore Software Development vs. Nearshore Software Development

Offshore software development or nearshore software development, that is the question...

Although often confused with each other, these concepts are different. While offshore software development maintains outsourcing IT services to a company in different time zones, nearshore software development means looking for business partners in nearby regions with similar time zones. By way of illustration, a Western European company can work with an outsourcing provider in Ukraine, while a US company might consider nearshore companies from South America.

What Is Offshore Healthcare Software Development?

Now, let us take a look at offshore software development in terms of the healthcare industry.

Offshore healthcare software development stands for cooperation with external dedicated teams in different countries to develop custom software solutions for the healthcare sector. Simply stated, it is a subset of the broader offshore software development concept, with a precise focus on creating software for healthcare organizations. In fact, strict regulatory requirements and data sensitivity are the two fundamental cornerstones of offshore healthcare software development. For example, HIPAA in the US and GDPR in Europe are the most popular compliance standards offshore healthcare software developers must adhere to. As a great opportunity to implement digital innovation while optimizing expenses, offshore healthcare software development is gaining momentum. Still, it is essential to remember that the healthcare context is also associated with specific challenges, such as data security and regulatory compliance.

Types of Offshore Healthcare Software Development Solutions

Below, we offer the list of the most popular offshore healthcare development solutions that are typically outsourced by healthcare organizations. Please note that it is an incomplete list since all solutions can be customized and adjusted to the unique needs of each company.

Electronic Health Records (EHRs)/ Electronic Medical Records (EMRs)

Serving as a digital version of a patient's paper chart, EHRs/EMRs help to digitize medical data like medical history, diagnoses, treatments, medications, immunization dates, allergies, and test results information in an easy and efficient manner.

Electronic Prescriptions (eRx)

From custom eRx mobile apps to eRx third-party integrations, eRx solutions cover a wide array of software. Aimed at streamlining the medication prescription process, eRx solutions also ensure enhanced medication adherence and reduced costs.

Telemedicine & Telehealth Solutions

Eliminating geographical boundaries, telemedicine and telehealth solutions represent an innovative way of delivering remote patient care. From telemedicine apps to telehealth video streaming platforms, the variety of high-performing telehealth/telemedicine solutions truly impresses.

Medical Billing Solutions

A perfect option for healthcare organizations seeking to streamline insurance claims and billing procedures. Offshore software development teams can build flexible, user-friendly medical billing software that integrates with EHR/EMR systems and other clinical tools.

Healthcare Analytics Solutions

When it comes to offshore healthcare software development, it is essential to mention the advanced healthcare analytics platform, a solution intended to help analyze vast amounts of healthcare data to gain valuable insights into patient care outcomes, operational efficiencies, and more.

Pharmacy Payment & Management Systems

This offshore healthcare software development solution enables healthcare practitioners and pharmacies to receive payments in days instead of months. Moreover, pharmacy payment/management systems can replace many manual operations, such as prescription management and payment processing.

Healthcare API and Integration

As an excellent option for sharing vulnerable patient data, APIs & integrations play a crucial role in streamlining the intake process for eligibility and benefits verification, claims submission, processing, payments, and more.

Appointment Booking Platforms

Scheduling medical care has never been easier. Offshore healthcare software development brings scheduling solutions to an entirely new level, providing enhanced convenience at each step of the appointment booking process.

Data Management Solutions

One of the most significant advantages of offshore healthcare software development is undoubtedly automation. Hence, data management solutions are aimed at automating various procedures, from inputting patient information into EHRs to managing large amounts of data efficiently.

Mobile Solutions

While more and more physicians and patients integrate mobile devices into their care delivery practices, offshore healthcare software development offers a wide array of mobile solutions that serve diversified healthcare needs, from remote monitoring and scheduling services to payment and prescription apps.

Medical Device Integration

Hardware integration connects all the areas of the healthcare organization into one high-performing web-based system. In this way, offshore healthcare software development serves as a perfect initiative to enhance medical control and management processes while eliminating manual tasks.

Offshore Healthcare Software Development in Numbers

At devabit, we believe that numbers speak louder than words. In this regard, we have prepared several illustrative statistics to provide you with unique offshore software development insights.

Benefits of Offshore Healthcare Software Development

After all, it is time to reap the benefits of offshore healthcare software development.

01 / Save on Investment

Healthcare organizations often have strict budget limitations, so cost-effective offshore healthcare software development solutions are extremely essential. Fortunately, offshore healthcare software development significantly reduces costs compared to hiring in-house teams or local contractors. Labor costs in regions like Asia or Eastern Europe are typically lower. For example, developing a telemedicine app in the US may cost $100,000 to $200,000, whereas offshore healthcare software development teams can deliver the same project for 40-60% less without compromising quality. Sounds impressive, right?

02 / Deep Expertise

Offshore healthcare software development opens doors to a global talent pool. Countries like India and Ukraine have robust IT industries with professionals experienced in healthcare projects. Providing niche expertise in technologies such as artificial intelligence, blockchain, and IoT, offshore healthcare software development companies offer innovative solutions that help organizations stay ahead of the competition.

03 / Faster Time-to-Market

Offshore healthcare software development teams, especially those working in different time zones, can accelerate development cycles. By adopting a "follow-the-sun" model, projects continue their growth around the clock. By way of illustration, a US-based healthcare company can assign tasks to the offshore healthcare software development team at the end of its workday, ensuring productivity even during off-hours.

04 / Scalability & Flexibility

Healthcare project requirements often vary. Hence, offshore healthcare software development provide the flexibility to scale teams up or down based on the workload. Thanks to such adaptability, startups and mid-sized healthcare organizations can easily manage unexpected market conditions.

05 / Business Value

Offshore healthcare software development outsourcing allows healthcare providers to focus on their primary mission — delivering quality care while third-party vendors handle the rest. Therefore, healthcare organizations can allocate internal resources to core operations by entrusting technical tasks to external partners.

Risks of Offshore Healthcare Software Development

While offshore healthcare software development provides multiple benefits, it is also associated with several challenges that require careful consideration. Let us take a look at each of them in detail.

01 / Data Vulnerability

Offshore healthcare software development providers have to work with sensitive patient information, making data security a top priority. Offshore healthcare software development teams may operate in regions with differing regulatory frameworks, increasing the risk of non-compliance with standards like HIPAA (Health Insurance Portability and Accountability Act) in the US and GDPR (General Data Protection Regulation) in Europe. As a result, even the slightest data breach can cause severe financial and reputational consequences.

02 / Communication Barriers

Time zone differences, language barriers, and cultural aspects can affect communication. Misunderstandings may lead to delays, errors, or unmet expectations, especially in complex healthcare projects requiring precise specifications.

03 / Quality Control Challenges

Ensuring consistent quality in offshore healthcare software development projects can be challenging. In case offshore healthcare software development vendors have never worked in healthcare industry standards, it may be difficult to deliver high-quality results while ensuring the software's functionality and compliance.

04 / Hidden Costs

While offshore healthcare software development typically reduces investments, hidden expenses can arise. For instance, frequent travel for on-site visits, legal fees for cross-border contracts, and additional project management efforts to bridge communication gaps can add extra points to your budget planning. Complete

05 / Dependency on Third-Party Vendors

Relying on offshore healthcare software development vendors can pose risks if the partnership ends unexpectedly. Issues like vendor bankruptcy or project abandonment could disrupt operations and require costly investment.

How to Mitigate Offshore Healthcare Software Development Risks

To ensure successful offshore healthcare software development cooperation, healthcare organizations must proactively address potential risks. Below, you can find several efficient risk mitigation strategies.

Put an emphasis on the selection process.

The modern market offers thousands of offshore healthcare software development providers, so selecting a trustworthy partner can be a challenging task. To choose the right provider, evaluate their portfolio, client testimonials, and certifications such as ISO 27001 for data security.

Ensure regulatory compliance.

Consider offshore healthcare software development providers that understand and comply with relevant healthcare regulations like HIPAA and GDPR. Besides, including compliance requirements in contracts and regularly auditing adherence would be a good idea.

Set clear expectations.

Develop detailed project documentation, including scope, timelines, and deliverables. Use tools like Jira or Trello to track progress and maintain transparency.

Invest in communication.

Bridge time zone and language gaps by scheduling regular video conferences and assigning dedicated project managers on both sides. Use collaboration tools like Slack or Microsoft Teams for seamless communication.

Conduct regular quality audits.

Implement rigorous testing and code reviews throughout the project lifecycle. Engage third-party auditors if needed to ensure compliance with healthcare standards.

Final Thoughts on Offshore Healthcare Software Development

At this point, our offshore healthcare software development story comes to an end. Well, hopefully, your offshore healthcare software development journey has yet to begin. If you are still hesitating concerning the risk-reward spectrum of offshore software development, take into account that risks can be easily managed while it would be nearly impossible to establish a round-the-clock software development process with any other cooperation model. All in all, with a reliable offshore healthcare software development provider, the development process can turn into an absolute pleasure with no pitfalls coming your way.

At devabit, we offer both offshore and nearshore custom healthcare development services that rock. Backed by 15+ years of experience delivering innovative healthcare software solutions, we know how to bring your idea to life in the best way possible. We offer dedicated teams of various specializations, ranging from custom web development to next-gen research & discovery services. Let us take the first step towards your technology-powered future together. Contact our consultancy team to get a free consultation right now.